{"id":203823,"date":"2022-09-06T19:20:40","date_gmt":"2022-09-06T13:50:40","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=203823"},"modified":"2022-09-06T19:20:40","modified_gmt":"2022-09-06T13:50:40","slug":"dangerous-divergence","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/dangerous-divergence\/","title":{"rendered":"Dangerous divergence"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article\u00a0\u201c<strong>Dangerous divergence<\/strong>\u201d\u00a0published in\u00a0<strong>The Business Standard<\/strong>\u00a0on\u00a0<strong>6<sup>th<\/sup> September 2022<\/strong>.<\/p>\n<p><strong>Syllabus: GS 3 \u2013 Inequality in India<\/strong><\/p>\n<p><strong>News: <\/strong><strong>This article discusses the measures that can be taken to address the regional inequality in India.<\/strong><\/p>\n<p><strong>Economists have been arguing for a long time that there will be a convergence \u201cconvergence\u201d, in which similar economic units such as states will eventually converge in output and related indicators, removing inequality.<\/strong><\/p>\n<p>However, in recent times Indian states have provided little evidence of convergence.<\/p>\n<p>There is a need to address the degree of regional inequality in India else this inequality will pose a major challenge to India\u2019s unitary and federal structure.<\/p>\n<p>Data suggests that the richer states, such as those in the south of India, are between 3 to 4 times as wealthy in terms of per capita income compared to populated states of north and east-central India.<\/p>\n<p>Inflation also hits the citizens of poorer states more than it does those in richer states.<\/p>\n<p><strong>How can this inequality be reduced?<\/strong><\/p>\n<p>There can be fiscal transfers from the richer states to the poorer ones but there are political issues related to it.<\/p>\n<p>There is a hope that dynamic leadership in the poorer states will bring a business-led change but the problem is that there are other states available to investors for investing.<\/p>\n<p>Public spending might focus on <strong>building up human capital in the poorer region<\/strong>s rather than on consumption subsidies. But this too will not work unless the returns to human capital in these regions are clear and demonstrable.<\/p>\n<p>Another solution is to enable and protect <strong>internal migration<\/strong>.<\/p>\n<p>Internal migration acts as a safety valve and equalizes the returns to labor and human capital allocation across regions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cDangerous divergence\u201d\u00a0published in\u00a0The Business Standard\u00a0on\u00a06th September 2022. Syllabus: GS 3 \u2013 Inequality in India News: This article discusses the measures that can be taken to address the regional inequality in India. Economists have been arguing for a long time that there will be a convergence \u201cconvergence\u201d, in which&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/dangerous-divergence\/\">Continue reading <span class=\"screen-reader-text\">Dangerous divergence<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-203823","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704935204},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/203823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=203823"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/203823\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=203823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=203823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=203823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}